Tellabs reported a net loss of $999 million, or $2.51 a share, representing a sharp reversal from income of $3.6 million, or a penny a share, in the comparable year-ago quarter. The company also announced that it expected to reduce its workforce in order to cope with weak sales..
TLAB stock falls along with the large set of major stocks affected by the plunging price of Fannie Mae and Freddie Mac. (Bloomberg, Aug 20, 2008)
Tellabs announced that it did not expect to meet analyst estimates for the quarter. The company expects earnings between 2-3 cents a share and sales between $452-460 million; analysts were expecting earnings of 6 cents a share and sales of $500.9 million.